Bombay Burmah shares jump 13% as SC recalls lease rent observations

The stock rose from a previous close of ₹1,426.20 after the court, in its order dated August 19, 2026, allowed the company’s interlocutory application and recalled parts of its May 29, 2026 order that referred to a lease rent liability of ₹4,655 crore.

The company stated that the liability pertained to its erstwhile tea estate in Singampatti, Tamil Nadu, and that the civil appeals in question did not concern lease rent payable by the corporation.

It added that no notice, demand, or computation of lease rent had ever been issued or served on it, and that it was not given a hearing or opportunity to object to the alleged amount.

Bombay Burmah said it filed the interlocutory application seeking to recall and expunge the observations on the grounds that the matter was outside the scope of the appeals and lacked procedural fairness.

The Supreme Court’s August 19 order noted that the amount of ₹4,655.24 crore had neither been the subject of a notice served on the company nor finally determined after providing it an opportunity to be heard.

As a result, the court recalled the observations in paragraph 59 of its May 29, 2026 order to the extent they related to the lease rent liability of Bombay Burmah Trading Corporation.

The company said it will continue to take all necessary steps in the matter and keep stakeholders informed of any material developments.